This article was written by Esther Hanon, a Financial Analyst at I Know First.

[Source: CNN Money, April 24th, 2018]

Time Warner Cable and AT&T Battle the DOJ In Response to Potential Merger:

“Netflix, Amazon and Google have enormous potential to bring new content to consumers but for at least many years to come, they have to go through AT&T and Comcast to get to their customers.That gives AT&T enormous market power.”

-- Gene Kimmelman, a former antitrust attorney for the DOJ

Summary:

AT&T for months has been facing off against the Department of Justice which is seeing to block its merger deal with Time Warner, which controls channels like HBO, CNN, and Warner Bros. Studios.

AT&T says the deal would allow it to compete with firms, like Netflix and Amazon, which are seeking to dominate online streaming. The government is arguing the combination would give AT&T too much power and ultimately would lead to higher prices for consumers.

Chief Executive Randall Stephenson tells a judge the DOJ's antitrust claims against AT&T's purchase of Time Warner Inc. were “absurd” rejecting the government’s arguments that the enlarged company would use its powers to raise prices.

The Justice Department is arguing that the AT&T-Time Warner merger ultimately will means consumers will pay more — 45 cents a month more, according to its calculations. AT&T said those calculations are wrong

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